Japan surrendering was “The Happiest Day in American History,” The New

York Times wrote.

But there’s the saying, “History is just one damn thing after another.”

The joy of the war ending was quickly met with the question, “What happens
now?”

Sixteen million Americans—11% of the population—served in the war. About

eight million were overseas at the end. Their average age was 23. Within 18
months all but 1.5 million of them would be home and out of uniform.

And then what?

What were they going to do next?

Where were they going to work?

Where were they going to live?

Those were the most important questions of the day, for two reasons. One, no
one knew the answers. Two, if they couldn’t be answered quickly, the most
likely scenario—in the eyes of many economists—was that the economy would
slip back into the depths of the Great Depression.

Three forces had built up during the war:

Housing construction ground to a halt, as virtually all production capacity was

shifted to building war supplies. Fewer than 12,000 homes per month were built
in 1943, equivalent to less than one new home per American city. Returning
soldiers faced a severe housing shortage.

The specific jobs created during the war—building ships, tanks, and planes—
were very suddenly not necessary after it, stopping with a speed and magnitude
rarely seen in private business. It was unclear where soldiers could work.